In Vytorin, Merck has a shared revenue stream in a mature product. Merck's future wasn't riding on Vytorin; it's a cash cow and will remain one going forward. It just won't be quite as fat a cash cow...
On the eve of HUGE new product introductions and ENORMOUS potential for good news from Gardisil and Januvia---both of relative unknown revenue potential---MRK offers an incredible buying opportunity at this price point.
Agreed, Fosamax is old news, but will make a bigger impression now that Vytorin growth is stopped in its tracks. Will be interesting to see the next (i.e., April) earnings report to see if I'm right. But I'm not selling mine, though I still expect to buy more shares in the mid-high 30's. Let's see who's right.
And the pipeline is too far away for any help in the near term - and you'd have to believe what little there may be has already been priced in to Merck's earlier guidance for this year.
See Vytorin comments in original post---not a deal-breaker in the least.
Fosamax is NOT news. No impact on stock price at all.
Merck's potential upside crushes its potential downside. Check the pipeline.
Not a chance in hell of $35. I expect $65 by year's end.
I put my money where my mouth is. I pulled sizable cash out of a market index fund, up 2% today, and bet heavily on MRK, which was down 2%. The conditions are ripe for a great trade. I expect a 2-4% move on the 31st, which is earnings announcement day.